Federal Aviation Administration Advisory Circular


Section 3.90-Day Occupant, Owner or Tenant



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Section 3.90-Day Occupant, Owner or Tenant

3.1.Payment Eligibility.


A tenant or owner-occupant displaced from a dwelling is entitled to a payment not to exceed $5,250 for rental assistance or downpayment assistance, if such displaced person:

a.Has actually and lawfully occupied the displacement dwelling for at least 90 days immediately prior to the initiation of negotiations; and

b.Has rented, or purchased, and occupied a decent, safe, and sanitary replacement dwelling within one year (unless the sponsor extends this period for good cause) after:

(1)For a tenant, the date the displaced person moves from the displacement dwelling, or
(2)For an owner-occupant, the later of:
(a)The date the displaced person receives final payment for the displacement dwelling, or in the case of condemnation, date the full amount of the estimate of just compensation is deposited with the court; or
(b)The date the displaced person moves from the displacement dwelling.

3.2.Rental Assistance Payment.

a.Amount of Payment. An eligible displaced person who rents a replacement dwelling is entitled to a payment not to exceed $5,250 for rental assistance. Such payment shall be 42 times the amount obtained by subtracting the base monthly rental for the displacement dwelling from the lesser of:

(1)The monthly rent and estimated average monthly cost of utilities for a comparable replacement dwelling; or
(2)The monthly rent and estimated average monthly cost of utilities for the decent, safe, and sanitary replacement dwelling actually occupied by the displaced person.

b.Base Monthly Rental For Displacement Dwelling. The base monthly rental for the displacement dwelling is the lesser of:

          1. The average monthly cost for rent and utilities at the displacement dwelling for a reasonable period prior to displacement, as determined by the Agency (for an owner-occupant, use the fair market rent for the displacement dwelling. For a tenant who paid little or no rent for the displacement dwelling, use the fair market rent, unless its use would result in a hardship because of the person's income or other circumstances);
          2. Thirty (30) percent of the displaced person's average monthly gross household income if the amount is classified as “low income” by the U.S. Department of Housing and Urban Development’s Annual Survey of Income Limits for the Public Housing and Section 8 Programs.3 The base monthly rental shall be established solely on the criteria in (b)(1) above for persons with income exceeding the survey’s “low income” limits, for persons refusing to provide appropriate evidence of income, and for persons who are dependents. A full time student or resident of an institution may be assumed to be a dependent, unless the person demonstrates otherwise or,
          3. The total of the amounts designated for shelter and utilities if the displaced person is receiving a welfare assistance payment from a program that designates the amounts for shelter and utilities.

c.Selected comparable replacement dwelling. Of the comparable listings searched, the property judged the most comparable, referencing the definition of comparable housing provided in paragraph 6-2, shall be used as the "Selected" comparable to calculate the replacement housing payment eligibility for the displaced person. The sponsor shall fully and systematically search the available replacement properties and select that comparable which represents the "Most" comparable property. Figure 6-2 provides a format for comparing the features of available replacement property to the comparability requirements of the acquired dwelling to determine the "Selected" comparable.

d.Documentation and Certification. The same process as described in paragraph 6-8 for a 180-day homeowner to select a comparable dwelling is applied to select a comparable replacement rental dwelling. The selected most comparable rental would be that available property for rent that best conforms to the definition of comparable dwelling at paragraph 6-2. The use of the form entitled "Replacement Housing Payment Determination - 90 Day Occupant", provided in Appendix 1 is recommended for documenting the comparable rental search and calculation of the replacement housing payment eligibility.

e.. Manner of Disbursement. A rental assistance payment may, at the sponsor's discretion, be disbursed in either a lump sum or in installments. Under last resort housing procedures installment payments shall be made.

3.3.Downpayment Assistance.

a.Amount of payment. An eligible displaced person who purchases a replacement dwelling is entitled to a downpayment assistance payment in the amount the person would receive under paragraph 6-21 if the person rented a comparable replacement dwelling. At the Sponsor’s discretion, a downpayment assistance payment that is less than $5,250 may be increased to any amount not to exceed $5,250. However, the payment to a displaced homeowner shall not exceed the amount the owner would receive under Section 1 if the homeowner met the 180 day occupancy requirement. If the Agency elects to provide the maximum payment of $5,250 as a downpayment, the Agency shall apply this discretion in a uniform and consistent manner, so that eligible displaced persons in like circumstances are treated equally. A displaced person eligible to receive a payment as a 180-day owner-occupant (as described Section 1) is not eligible for this payment.

b.Application of payment. The full amount of the replacement housing payment for downpayment assistance must be applied to the purchase price of the replacement dwelling and related incidental expenses.




Section 4.Replacement Housing Payment Claims

4.1.Claims for Replacement Housing Payments.


In order to obtain a replacement housing payment, a displaced person must file a written claim with the sponsor on a form provided by the sponsor for that purpose. The claim shall be filed within 18 months after the date the applicant moves from the displacement dwelling, or the date of the final payment for the acquisition, whichever is later. Appendix 1 list recommended claim forms that may be used for the sponsor's program.

4.2.Purchase/Lease of Replacement Dwelling.


A displaced person is considered to have met the requirement to purchase a replacement dwelling, if the person:

a.Purchases a dwelling;

b.Purchases and rehabilitates a substandard dwelling;

c.Relocates a dwelling which he or she owns or purchases;

d.Constructs a dwelling on a site he or she owns or purchases;

e.Contracts for the purchase or construction of a dwelling on a site provided by a builder or on a site the person owns or purchases; or

f.Currently owns a previously purchased dwelling and site, valuation of which shall be on the basis of current market value.

4.3.Inspection and Sponsor DSS Certification of Replacement Dwelling.

a.Before making a replacement housing payment or releasing the initial payment from escrow, the sponsor or its designated representative shall inspect the replacement dwelling and determine whether it is a decent, safe, and sanitary dwelling, see paragraph 6-3.

b.The sponsor shall certify that the dwelling to be purchased by the displaced person is DSS. Figure 6-4 provides a sample inspection and certification statement form. The DSS certification is made solely for purposes of providing the replacement housing payment in accordance with the Uniform Act. A displacee may NOT be paid any replacement housing payments for a dwelling that does not meet DSS standards. The sponsor must advise displaced persons that the sponsor's DSS certification must be made prior to or as a condition to be satisfied in a purchase or sales contract for the purchase of the replacement dwelling.

c.As applicable the sponsor should advise the displacee that the DSS certification is based on a visual inspection and certification that the property condition prior to purchase met the specified DSS standards. The displacee should further be advised that the contract to purchase a replacement dwelling may be made conditional upon a satisfactory structural inspection of the property. The sponsor should maintain referrals of qualified structural engineers or building inspector to perform these inspections. The cost of an inspection secured by the displaced person is a reimbursable incidental cost described at paragraph 6-12.


Section II - To Be Completed By Agency

DSS INSPECTION AND CERTIFICATION

Displacee:       Property Street Address:      
Does the replacement dwelling conform to the following standards for Decent, Safe, and Sanitary Housing?

YES NO


1. Conforms to local housing and occupancy codes?  
2. Structurally sound, weathertight, and in good repair?  
3. Contains a heating system able to maintain 70ºF in living area?  
4. Has an adequate, safe electrical wiring system?  
5. Has separate bathroom facilities that conform to DSS standards?  

(private, hot/cold water to sink & shower/tub, sewer connection, flush water closet, all in working order)


6. Has a kitchen facility that conforms to DSS standards?  

(hot/cold water to sink, connected to sewer, range/refrig space & utility connection, all in working order)


7. Has adequate unobstructed egress?  
8. Is property barrier free to accommodate disabled displaced person?  Yes * No N/A

* If No, describe property improvements to be made to provide barrier free ingress, egress, or use of property as required to accommodate disabled person(s) prior to occupancy.      

________________________________________________________________________________________________________

***************CERTIFICATION***************
 TO THE BEST OF MY KNOWLEDGE, BASED ON VISUAL INSPECTION OF THE PROPERTY, THE REPLACEMENT DWELLING MEETS THE STANDARDS FOR DECENT, SAFE, AND SANITARY HOUSING, AS ESTABLISHED IN THE RELOCATION ASSISTANCE PROCEDURES OF THE AIRPORT AUTHORITY AND CONFORMING TO 49 CFR PART 24 FOR FEDERALLY ASSISTED PROJECTS.
 THE DWELLING DOES NOT PRESENTLY CONFORM TO DSS REQUIREMENTS, BUT CAN BE MADE TO CONFORM BY ACCOMPLISHING THE FOLLOWING PRIOR TO PURCHASE AND OCCUPANCY. ____________________

_____________________________________________________________________________________________________


THIS DETERMINATION IS MADE ON BEHALF OF THE AIRPORT AUTHORITY, AND IS MADE SOLELY FOR PURPOSES OF DETERMINING ELIGIBILITY FOR REPLACEMENT HOUSING PAYMENTS.
DATE:      INSPECTOR/AGENT:     
Signature:

***********************************




Remarks:     




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4.4.Payment After Death.


A replacement housing payment is personal to the displaced person and upon his or her death the undisbursed portion of any such payment shall not be paid to the heirs or assigns, except that:

a.The amount attributable to the displaced person's period of actual occupancy of the replacement housing shall be paid.

b.Any remaining payment shall be disbursed to the remaining family members of the displaced household in any case in which a member of a displaced family dies.

c.Any portion of a replacement housing payment necessary to satisfy the legal obligation of an estate in connection with the selection of a replacement dwelling by or on behalf of a deceased person shall be disbursed to the estate.

4.5.Insurance Proceeds.


To the extent necessary to avoid duplicate compensation, the amount of any insurance proceeds received by a person in connection with a loss to the displacement dwelling due to a catastrophic occurrence (fire, flood, etc.) shall be included in the acquisition cost of the displacement dwelling when computing the price differential.

4.6. Deductions From Relocation Payments.


The Sponsor shall deduct the amount of any advance relocation payment from the relocation payment(s) to which a displaced person is otherwise entitled. The Agency shall not withhold any part of a relocation payment to a displaced person to satisfy an obligation to any other creditor.

4.7.Multiple Occupancy of One Displacement Dwelling.


If two or more occupants of the displacement dwelling move to separate replacement dwellings, each occupant is entitled to and may claim a reasonable prorated share, as determined by the sponsor, of any relocation payments that would have been made if the occupants moved together to a comparable replacement dwelling. However, if the sponsor determines that two or more occupants maintained separate households within the same dwelling, such occupants have separate entitlements to relocation payments.

4.8.Conversion of Payment.


A displaced person who initially rents a replacement dwelling and receives a rental assistance payment, but then purchases and occupies a replacement dwelling within the prescribed 1-year period, is eligible to receive a replacement housing payment not to exceed $22,500 or a downpayment not to exceed $5,250 if the eligibility criteria for such payment is met. However, any portion of the rental assistance payment that has been previously disbursed to the displaced person shall be deducted from a subsequent replacement housing payment or downpayment.

4.9.Reserved





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